Dell cuts reliance on Taiwan

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Encouraged by the prospect of a one per cent saving on its freight charges, Dell has reduced its OEM manufacturing in the Far East, preferring to produce and assemble more products in its Texas factory. The two companies reported to be affected, Quanta and Compal are playing down the impact of Dell's decision. Quanta said that it is perfectly normal for Dell to produce partial orders itself as its sales are growing, and both companies said that it would not affect them. Compal and Quanta said that orders for next year were actually up on this year. Quanta has received orders totalling three million units, up 50 per cent on this year, but Compal would not discuss exact figures. ®